Answer:
Units will need to be purchased in February are a. 52,000 units
Explanation:
Sales for January are budgeted at 50,000 units, and the company expects sales to increase 4% each month.
Sales of February are budgeted = 50,000 + 50,000 x 4% = 52,000 units
Units will need to be purchased in February = Ending inventory in February + Units Sold of February - Beginning inventory in February.
The company's policy is to keep ending inventory each month at 10,000 units.
Therefore,
Ending inventory in February = Beginning inventory in February = Ending inventory in January = 10,000 units
Units will need to be purchased in February = 10,000 + 52,000 - 10,000 = 52,000 units
Answer:
EOQ = 359 units
Number of order placed = 7.2 times
Explanation:
<em>The Economic Order Quantity (EOG) is the order size that minimizes the balance of ordering cost and holding cost. At the EOQ, the carrying cost is equal to the ordering cost.</em>
<em>It is computed using he formulae below</em>
EOQ = √ (2× Co× D)/Ch
C0- 500, Ch- 20, D- 2,580
EOQ= √ (2× 500× 2580)/20
=359.16
EOQ = 359 units
Number of order place d per year = Annual demand / order size
Number of order placed = 2,580/ 359
= 7.2 times
Answer:
The price of the bond is $ 1,041.22
Explanation:
In calculating the price of the bond i discounted the future cashflows consisting of coupon payment and par value at redemption using the discount factor 1/(1+r)^N where r is the semi-annual YTM and N is the relevant period of cash flow.
The remaining coupon payments imply 14 years as a year has passed since the bond was issued.
Find attached spreadsheet.
Question:
Please see the Demand and Cost information reproduced in the attached table
Answer:
The correct choice is A)
Profit if maximized where price is equal to $20.
At this price, MR = MC.
Please see the attached PDF.
Explanation:
The profit-maximizing choice for the monopoly will be to produce at the quantity where marginal revenue is equal to marginal cost:
That is, the point where MR = MC.
If the monopoly produces a lower quantity, then MR > MC at those levels of output, and the firm can make higher profits by expanding output.
Cheers!
Answer:
a. Plan I is better is we drive 300 miles in a day.
b. 150 miles.
Explanation:
a. if mileage is 300 then rental charges will be,
Plan I : $36 + 17 cents * miles
$36 + 0.17 * 300 = $41.10.
Plan II : $24 + 25 cents * miles
$24 + 0.25 * 300 = $99.00
Plan I total cost for 300 miles is $41.10 whereas Plan II total cost for 300 miles is $99.00. Plan I is better plan and cost effective.
b. For mileage (m) calculation we will use equation;
Plan I = Plan II
$36 + 0.17m = $24 +0.25m
0.25m - 0.17m = $36 - $24
m = $12 / 0.08
m = 150 miles.
